News & Up­dates:

2022/2023 Financial Year Budget has been revised to UGX 47.2 trillion from UGX 43 trillion amidst financial constraints.

According to the Minister of State for Finance, Henry Musasizi, the budget will be financed by the available imposed taxes and borrowing that has already hit the 53% ceiling.

The Minister of State Finance and Planning, Amos Lugoloobi on 31st of March 2022, presented the budget estimates for the 2022/2023 financial year totaling UGX 47.2 trillion. He also laid the Appropriation Bill, 2022, Charter of Fiscal responsibility, and Certificate of Gender and Equity Compliance among others.

Musasizi told the House that UGX 28.6 trillion will be appropriated to different Ministries, Agencies, and Departments of government, while UGX 18.6 will cater for statutory expenditures, including debt payment.

He asked the lawmakers to consider the economic environment in which the budget was prepared, citing the inability to borrow over 53.9 percent, the reluctance by to impose new taxes or raise the existing taxes due to the need for the economy to recover from the COVID-19 pandemic impact among other factors.

The Minister further reiterated the Government’s commitment not to exceed 53.9 percent of Gross Domestic Product (GDP) in borrowing as provided for in the Charter of Fiscal Responsibility.

Regarding the question of supplementary expenditures, the Minister said that the Government was determined to end the fiscal indiscipline of supplementary budgets, beginning next FY 20221/2023. He said that they would work to limit supplementary expenditures to three percent of the total approved budget as provided for in the law.

The Shadow Minister of Finance, Muwanga Kivumbi, also the Butambala County legislator observed that as the Opposition, they had noticed a mismatch in the budget proposals with what Parliament had approved in the National Budget Framework Paper.

He said that the inconsistencies in the Charter for Fiscal Responsibility and the National Budget Framework Paper violate section 13 (b) of the Public Finance Management Act. He asked the Minister to prepare an explanation when the matter comes up for discussion.

He, however, advised that the Minister ought to bring a motion to Parliament where there is any variance between the Charter for Fiscal Responsibility and the National Budget Framework Paper.

The Speaker of Parliament Anita Among lauded the National Budget for FY 20221/2023 that has a component of the Parish model. She was, however, concerned that the executive has not brought to Parliament the Policies and guidelines for the Parish Model despite numerous reminders by Parliament.

In response to the concerns, the minister of General Duties, Justine Kasule Lumumba promised to table the said policies and regulations before Parliament on Wednesday 20th April 2022.

 

Ends….